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The following details relate to a shop which currently sells 25,000 pairs of shoes annually.
Selling price per pair of shoes shs.40 Purchase cost per pair of shoes shs. 25
Total annual fixed costs shs.
Salaries 100,000
Advertising 40,000
Other fixed expenses 100,000
Required
Problem i. What is the contribution per pair of shoes?
Problem ii. What is the break-even number of pairs of shoes?
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